GKM

What's the Smartest Money Doing? Buffett's Buying Goldman Sachs

So how is it I replicate Warren's deal exactly? I don't understand. Is this author just dense, dim witted or is s/he being facetious? Even Buffett doesn't believe the value of GS is the current market price. Otherwise the strike on the warrants would be something like $175.

Whale Watching: Buffett's Move Is Just What Investors Need

BSCLossMan, nothing ever goes down in a straight line but it will eventually find it's level (and it ain't there yet).

Buffett Enters the Fray

Jimmy, I think that's exactly what we're all pointing out.

Buffett Enters the Fray

I calculate that Buffett figures the GS stock is really valued currently at less than $90. That's based on the longest dated ATM call option on GS I can find which is $25 and that is grossly understated since time is about half the time Buffett has on his warrants.

Buffett Enters the Fray

Well at least Buffett is only up $650 million on this deal already this morning as opposed to afterhours where he was up $1 billion. I wonder if he was the one selling in afterhours yesterday. Imagine how much he'll make just selling calls against that position. He'll probably pay off his preferred stake and have the dividend and warrants for free.

Buffett Warned Us in 2003

mkreisel, writing 1300 puts when at 1200 makes a lot more sense than writing them at 1400. Wouldn't you agree that would be a better deal?

Thanks to the SA Editor for the link change over.

Buffett Warned Us in 2003

Trying the link again...

tinyurl.com/4cnxmk

[SA editor: sorry we can't accommodate long links, we have created a tinyurl for you.]

Buffett Warned Us in 2003

Don, I actually do. Here's my long term chart of the Dow. I think we're in about a 22 year bear and we've put in 8 so far so at the end of 14 years I expect we'll be much lower than where we are today.
http://...[see below]

Today we likely broke the long term trend line you see on that chart that was so critical to stay above.

Buffett Warned Us in 2003

All classic quotes from a couple smart guys. However, I still can't understand why Buffett wrote those puts on the S&P knowing that there was this kind of catastrophe waiting in the wings. If he is truly a genius, now would be the time to write those puts rather than having rode them down from earlier this year until now. If you have an answer, I'd appreciate it.

Buffett's Offer Won't Save the Monolines

There are a couple telling features about Buffet's offer. 1) Buffett realizes that the monolines are in such dire straits that they might even contemplate this. How can this be bullish for those stocks or the market? 2) Why did Buffet come public with this proposal? To put pressure on the monolines to possibly accept his offer? Is it to display altruistic intent to make up for his recent gaff of commenting how the US dollar will be worthless? I'm tending to the latter. 3) Why did he do this now? Is he worried that in the near future the monolines will start to go belly up and then he'll have more competition to deal with in some liquidation process?